Public sector lender Union Bank of India is the latest bank to revise its interest rates on fixed deposits below Rs 2 crore. The rates are already effective from September 14, 2022. The interest rates were revised after the Reserve Bank of India (RBI) hiked the repo rates to 5.4 per cent in August. Following that, most lenders in the country have tweaked their fixed-term deposit rates. Fixed deposit schemes are considered useful tools to build an emergency or long-term corpus as they offer liquidity and assured interest income at regular intervals. With the revision, Union Bank of India will be offering a maximum interest rate of 6.20 per cent on fixed deposits maturing in 5 Years and 1 Day.
New interest rates
For fixed deposits maturing in 7 days to 45 days, the bank will now offer an interest rate of 3 per cent. The rate of interest for 46 -90 days FD schemes will be 4.05 per cent. Fixed deposits maturing in 91-180 days will now fetch an interest rate of 4.10 per cent and term deposits maturing in 181 days to less than 1 year will now fetch an interest rate of 4.6 per cent.
For the fixed deposit schemes maturing in 1 year, the bank will offer an interest rate of 5.35 per cent, while for term deposits of 1 year to 2 years, the bank will offer an interest rate of 5.45 per cent.
For 2 years to 749 days, the interest rate will be 5.50 per cent, a rate of 6.15 per cent on fixed deposits maturing in exact 750 days.
Fixed deposits with maturities between 750 days and three years will now pay interest at a rate of 5.50 per cent, while term deposits with maturities between three years and five years will now pay interest at a rate of 5.75 per cent.
For fixed deposits maturing in 5 years and 1 day, the bank will offer an interest rate of 6.20 per cent. The bank will guarantee an interest rate of 5.80 per cent for schemes maturing in 5 years 1 day to 10 years.
|Duration||Rate of interest|
|15 -30 Days||3.00%|
|46 -90 Days||4.05%|
|181 Days to||4.60%|
|> 1 Year to 2 Year||5.45%|
|> 2 Year to 749 Days||5.50%|
|>750 Days to 3 Year||5.50%|
|> 3 Year to 5 Years||5.75%|
|5 Years 1 Day||6.20%|
|>5 Years 1 Day to 10 Years||5.80%|
The bank has said that it will offer an additional rate component, which is over and above the normal interest rate, to all senior citizens on term deposits up to Rs 5 crore. This additional rate component is only applicable to domestic term deposits and is above 0.50 per cent over the normal rate. The bank has added that the rate of interest is calculated on a daily product basis and is credited every year on a quarterly basis in the months of April, July, October, and January.
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